Electronic Arts Q1 loss narrows on more sales

More demand for Rock Band, Battlefield titles

By Danny King -- Video Business, 7/30/2008

JULY 30 | Electronic Arts narrowed its fiscal first-quarter loss as sales jumped on such newer titles as Battlefield: Bad Company and UEFA EURO 2008 and more established games including Rock Band.

The company's stock fell in extended trading after the company’s sales, exclusive of a one-time gain on deferred revenue, lagged analysts’ estimates.

"We are now seeing the early returns of the change agenda we started last year," EA CEO John Riccitiello said in a statement. "We have more new titles than at any time in our history.”

EA’s net loss for the quarter ended June 30 narrowed to $95 million, or 30¢ a share, down 28% from $132 million, or 42¢, a year earlier, the company said today.

Revenue doubled to $804 million, including the recognition of $231 million in deferred revenue. EA was expected to earn 33¢ a share on sales of $639.9 million, the average analyst estimates in a Thomson Financial survey.

Once the world's largest videogame publisher, EA earlier this month was surpassed by the merger of Vivendi's games unit and Activision. The $9.85 billion acquisition created a publisher whose titles include World of Warcraft, the world’s biggest multi-player online game, and the Guitar Hero franchise.

Last week, EA extended its five-month-old, $2 billion offer for Grand Theft Auto publisher Take-Two Interactive by one month to Aug. 18, marking the offer’s fifth extension. Shareholders of Take-Two, whose GTA IV set one-day and first-week all-time records for videogames after its April 29 release, continue to reject the bid.

EA last week also signed an agreement with United Talent Agency as part of an effort to boost sales by licensing its titles for film and TV development.

The company has a number of anticipated games bowing soon, including Spore Creatures for the Nintendo Wii in the fourth quarter.